Weiss Ratings Slides EOS Down The Ranks Due To Centralization

Weiss ratings slides EOS down the ranks, downgrading the project due to centralization as we are reading in today’s EOS news.

Weiss ratings slides EOS from B to C- despite the current favorable estimations in the past, and the main reason was the major influence of the big token holders which could decide how to sway the network resources. The EOS blockchain gained its speed from the feature of about 21 block producers which transpire transaction information. Spreading the latest state of the distributed ledger is easier, compared to Bitcoin’s increase to above 9,300 anonymous nodes.

The EOS constitution also has special cases for blockchain accounts which are a feature that has been useful during hack attacks but also means that the transactions can be censored centrally. The concentration of resources in only a few ‘’whales’’ that could decide where to allocate the activities. This is also one of the reasons why the EIDOS token spread massively thus consumed most of the transactions on the EOS network.

The EOS is a network much similar to older ones like BitShares as well as Steemit and those networks showed in the past that the influence of whales can be immense and that only two nodes could even broadcast about million of free transactions. Other networks such as Lisk managed to show that the election process for delegates ended up with the voting power getting accumulated in the hands of only a few delegates. All of them were able to vote each other into place without having to resorts to regular user votes.

EOS trades currently at $2.75 which shows a gradual decline from the mid-year peak above $6,00 and the coin erased most of the gains for 2019 and is now on a path to reach lows that have not been seen since the bear market of 2018. According to blocktivity, the network seems to be carrying more than 43 million transactions per day. Most of those now below to minting EIDOS tokens while the other transactions that were related to distributed app activity and EOS even saw accusations that most of its dapps are visited by bots that mask the real usage statistics.